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Loss on sale of investment is:
  • a)
    Other expenses
  • b)
    Cost of material consumed
  • c)
    Amortization Expense
  • d)
    Depreciation
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Loss on sale of investment is:a)Other expensesb)Cost of material consu...
Loss on sale of investment

Loss on sale of investment refers to the decrease in value or the difference between the purchase price and the selling price of an investment. It occurs when the selling price is lower than the purchase price, resulting in a financial loss for the investor.

Other expenses

Other expenses are costs incurred by a business that are not directly related to the production of goods or services. They include various operating expenses such as salaries, rent, utilities, and marketing expenses. Loss on sale of investment is categorized as an other expense because it is not directly related to the cost of producing goods or services, but rather represents a financial loss incurred by the business.

Cost of material consumed

The cost of material consumed refers to the direct cost incurred by a business in the production of goods or services. It includes the cost of raw materials, components, and supplies used in the manufacturing process. Loss on sale of investment is not a cost directly related to the production process, so it is not classified as the cost of material consumed.

Amortization Expense

Amortization expense refers to the gradual reduction of an intangible asset's value over time. It is typically associated with assets such as patents, copyrights, and trademarks. Loss on sale of investment is not related to the amortization of intangible assets, so it is not considered an amortization expense.

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It is commonly associated with assets such as buildings, vehicles, and machinery. Loss on sale of investment is not related to the depreciation of tangible assets, so it is not classified as depreciation.

Conclusion

In conclusion, loss on sale of investment is categorized as other expenses because it represents a financial loss incurred by the business and is not directly related to the production process or the amortization or depreciation of assets. Other expenses refer to costs that are not directly associated with the production of goods or services, and loss on sale of investment falls under this category.
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Loss on sale of investment is:a)Other expensesb)Cost of material consu...
Other expenses are expenses that do not relate to a company's main business. As well as operating costs, the company needs to consider other expenses including interest expense and losses from disposing of fixed assets. Examples of other expenses include interest expense and losses from disposing of fixed assets.
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